Some of the financial issues implicated by child custody arrangements and court orders are (1) child support payments; (2) payment for health insurance; and (3) the ability to claim the child or children as dependents for tax purposes. The Internal Revenue Service (IRS) rules dictate that the parent with whom the child spent the most nights during the tax year has the right to claim the child as a dependent. And if the child spends an equal number of nights with each parent during the tax year, the parent with the higher adjusted gross income (AGI) has the right to claim the child as a dependent. Sometimes the child custody court will order the parents to alternate years of claiming the child as a dependent.

In New Hampshire, financial considerations in child custody arrangements include child support payments, healthcare costs, and tax implications. Child support is determined based on state guidelines that consider the income of both parents, the needs of the child, and the custody arrangement. The court may order one parent to provide health insurance for the child or to contribute to the cost of healthcare. Regarding tax implications, the IRS rules generally allow the custodial parent—the one with whom the child spends the majority of nights during the year—to claim the child as a dependent for tax purposes. If the child spends an equal amount of time with both parents, the parent with the higher AGI is entitled to the dependency exemption. However, New Hampshire courts can order parents to alternate the years they claim the child as a dependent, which should be reflected in the custody agreement and adhered to by both parties for tax filings.